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May 9, 2021
ECONOMY FINANCE&BANKING

IMF: Our forecasts reflect the data when disseminated – final results influenced by later decisions. PM Tudose : The last two IMF forecasts they made about Romania were wrong

Forecasts made by the International Monetary Fund (IMF) with respect to the economic evolutions are based on the data harvested at the moment of their dissemination, while the final results are influenced by decisions that are often taken later, the IMF representatives told AGERPRES on Wednesday.

AGERPRES asked for IMF’s opinion related to Prime Minister Mihai Tudose’s statements on Tuesday after an official meeting with the officials of the Fund, saying that the previous two forecasts of the IMF with respect to the Romanian economy “came out wrong.”

“Yesterday’s meeting between the Prime Minister [Mihai Tudose] and the IMF representatives in Romania was like a courtesy visit, following an invitation from the Prime Minister’s office. We appreciate the opportunity of a meeting with the Prime Minister and the exchange of opinions with respect to the recent economic developments and outlooks. As always, we are ready to continue this dialogue with the authorities in respect to the sound policies that promote a sustainable economic growth,” said the IMF officials.

At the same time, they explained that the Fund’s forecasts are based on information announced at the moment of their dissemination, with the final results being influenced by later decisions.

The Prime Minister stated on Tuesday that he met with the representatives of the IMF and World Bank to show them the figures for the year-end forecast and also to receive their technical support for the large strategic projects of Romania.

“I had an important meeting today with the representatives of the World Bank and the IMF. With the World Bank I wanted to meet just to secure our cooperation, given that the team representing the Bank in Romania has changed. We have all of their support and I do not mean here financial support, but the technical support that we need for the strategic projects of Romania. Moreover, I invited the IMF representatives to talks not to ask them for money, but to discuss with them and with the Minister of Finance to go to the Ministry of Finance and see the figures, since in October they will prepare the year-end financial forecast for Romania. Given the fact that the last two forecasts were wrong, for Romania did not do as IMF said, but it did better, we want to make sure that there wouldn’t be a third mistake, which might lead to interpretations; therefore, we offered them our support to show them the official figures for Romania, so that they can rely on these figures,” the Prime Minister said at the Parliament Palace.

He mentioned that he did not make any reproaches to the IMF team, but only “drew their attention.”

The Prime Minister denied that the IMF people voiced any concerns related to the Romanian economy, budget deficit or wage law. “We didn’t discuss money at all, only those forecasts that I wish to come out accurate,” said the head of the Executive.

 

PM Tudose : The last two IMF forecasts they made about Romania were wrong

 

Prime Minister Mihai Tudose said on Tuesday said that the last two International Monetary Fund (IMF) forecasts on Romania were wrong.

“We had a discussion today with the IMF, which also had another forecast. The discussion was very simple: the last two forecasts you made about Romania were wrong. We said Romania will grow by 5.2 percent, you said 3 percent, then you said we will not grow at all, but look and behold it was 5.7 percent. If you fail your next one, which is a year-end forecast that includes the national budget deficit forecast – we are counting on closing below 3 percent – 2.95 – 2.98, or perhaps 3 percent and a bit. If you give such communication, I understand that there can be two types of approach: either you do not really know it at all, or someone has something against Romania. In both cases it will be the last time we interact … “, Tudose told TVR public broadcaster on Tuesday evening.

He added that he has not yet concluded that the IMF would follow either of the two tracks.

In another line of thought, Tudose said Ionut Misa is a “good, serious and very hardworking” finance minister.

“Mr Misa has not broken the mould. A month ago, the Opposition asked us why we did not levy a toll, a tax that was possible according to the government programme, a surcharge on business turnover. We have reached full ridiculousness: being upbraided by the Opposition for a month and a half for having not levied a tax. Should I have scolded the finance minister for having done simulations? Yesterday in Parliament, some people heard voices even when they were alone. Why is the finance minister responsible for all sorts of things? The gray eminence of the PNL [National Liberal Party] came out with a statement that upset the stock exchange; then, there was someone hearing voices that the Finance Ministry is working on a tax on bank assets. Should I have scolded the finance minister because that person heard voices? Why should the minister be responsible for people hearing voices?” added Tudose.

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